When doing business in China, foreign investors occasionally become involved in disputes with their Chinese partners (individuals or companies) or even with the Chinese authorities. Such disputes are mainly commercial disputes relating to investments or the day-to-day operation of foreign-invested enterprises in China. The best way to approach such disputes varies from case to case.
Disputes can generally be settled through four primary mechanisms: negotiation, mediation, litigation and arbitration. A foreign investor may elect any of the four mechanisms to solve the dispute, depending on its actual status.
1. Negotiation
Negotiation, compared to other dispute resolution mechanisms, is usually the best ...
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